India Inc’s cumulative research and development outlay reached just $7.2 bn in FY26, a fraction of Alphabet’s $61 bn spend in 2025. The figure reflects modest growth since the 1991 balance‑of‑payments crisis that spurred economic liberalisation, raising questions about the country’s innovation pipeline.
According to Business Standard’s latest data (Sep 22 2026), listed Indian companies collectively invested $7.2 bn in research and development during fiscal year 2026. That amount is dwarfed by the $61 bn R&D budget reported by Alphabet in 2025, underscoring a persistent gap between India’s corporate innovation spending and that of leading global tech firms.
The report notes that total R&D outlays in the Business Standard sample have risen from roughly ₹957.8 crore in FY99 to ₹63,529.2 crore in FY26 – an increase in nominal terms but still modest when expressed in dollar terms. The 1991 balance‑of‑payments crisis, which triggered sweeping economic reforms, was intended to boost competitiveness and attract investment. Yet three and a half decades later, the aggregate spend remains a small share of global tech R&D budgets.
Analysts caution that the limited scale of corporate R&D may constrain India’s ability to transition from low‑cost manufacturing to high‑value innovation. While the reforms opened markets and improved capital flows, the data suggest that translating those gains into sustained research investment has been uneven. Policymakers and industry leaders are therefore urged to reassess incentives and funding mechanisms to bridge the innovation gap and fully leverage the country’s demographic and talent advantages.